Multiple Choice
Which of the following is the best reason for the issuance of long-term liabilities?
A) Debt financing offers an income tax advantage.
B) Risk to the firm may be increased.
C) Ownership interest is diluted but may be necessary to do.
D) Debt financing may cost the entity more but is the only available source of funds.
Correct Answer:
Verified
Correct Answer:
Verified
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